Pound at $1.35 a Reasonable Target If Brexit Deal Is Locked Down: BNP

The video discusses the impact of interest rate differentials on the dollar, noting that a drop below 200 basis points could negatively affect the dollar. It highlights the challenges models face in incorporating new factors like trade relations and Brexit. The discussion shifts to Brexit's influence on the pound, with predictions of its value reaching 1.35 if uncertainties are resolved.

What factors contribute to the uncertainty regarding the long-term relationship between the UK and the EU?

What are the estimated fair values for the pound under different Brexit scenarios?